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Full text of "Annual Evaluation Report Fiscal Year 1984"

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523-1

ANNUAL INTEREST SUBSIDY GRANTS
(CFDA No. 84.001)

I. PROGRAM PROFILE.

leaislation- Hig^ef Educat1on Act T1tle VII, Part C, Section 734, P.L.
9^374; Is amended, (20 U.S.C. 1132d-3). (Expires September 30, 1985)

Funding Since 1J8Q.:

Fiscal  Year                             Authorization                        Appropriation

Indefinite                             $29,000,000

Indefinite                               26,000,000

982                                         Indefinite                               25,500,000

igoo                                         Indefinite                               25,000,000

J984                                         Indefinite                               24,500,000

Purpose* Reduce the cost of borrowing from non-Federal sources for the
construction reconstruction, and renovation of needed academic facili-
ties The applicant must finance at least 10 percent of the project
through non-Federal sources, must be unable to secure as favorable a
loan from other sources, and must undertake the project in an economical
manner No state MW .receive more than 12.5 percent of the annual ap-
propriation and the aggregate principal cannot exceed $5,000,000 at any
one institution per fiscal year.

: Hi9her educat1on institutions or higher education building
agencies are eligible*

n. RESPONSE TOjg* 417(a)

The current objectives are to meet the Federal commitment on the 625
remaining commercial loans for construction projects approved prior to
FY 1974 and to make no new commitments to subsidize additional loans.

B.    Progress accomplishments

Fund*; aonroDriated in ^ "!984 were equal to the Federal commitment on
the remaining loans make prior to FY 1974.

C.  Costs, Benefns~and Effectiveness

Program Scope: The program appropriations represent the difference be-
tween the commercial rate on a loan and an interest rate of 3 percent.
As of FY 1984 625 (see Table !) of these grants are in active pay status,
43 projects have been paid in full, and 43 have been terminated or with-
drawn As can be seen from Table 1, the number of grants in active pay
status are expected to remain about the same: 621 in 1983 and 619 for
1985 Outstanding loan volume, however, will decline by about 5 percent
from* 1980 to 1983 along with the average interest subsidy. to the